Question: Intro Consider a project with a 4-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated

Intro Consider a project with a 4-year life. The initial cost
to set up the project is $100,000. This amount is to be

Intro Consider a project with a 4-year life. The initial cost to set up the project is $100,000. This amount is to be linearly depreciated to zero over the life of the project and there is no salvage value. The required return is 14% and the tax rate is 34%. You've collected the following estimates: Base case Pessimistic Optimistic Unit sales per year (Q) 6,000 Price per unit (P) Variable cost per unit (VC) 20 Fixed costs per year (FC) 30,000 4,000 40 35 50,000 8,000 60 15 20,000 50 Part 1 What is the annual free cash flow in the base case? BAttempt 1/1 for 10 pts. No decimals Submit BAttempt 1/1 for 10 pts. Part 2 What is the NPV in the base case? No decimals Submit BAttempt 1/1 for 10 pts Part 3 What is the NPV in the pessimistic case? No decimals Submit Part 4 What is the NPV in the optimistic case? -Attempt 1 /1 for 10 pts. No decimals Submit

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